By Kathryn Mayer
Health savings accounts
finished strong in 2013 — and they’re starting off 2014 strong, too.
A report out Wednesday from investment consulting firm Devenir finds that HSAs grew to an estimated $19.3 billion in assets and 10.7 million accounts at year-end 2013 and have grown to more than $20 billion in assets during January.
“HSAs continue to grow as Americans increasingly see that the HSA based defined contribution approach to health care is the best way to curb health care cost inflation,” Devenir president and cofounder Eric Remjeske said.
During 2013, HSA assets increased 25 percent while accounts increased 30 percent.
The rapid growth is evidence that HSAs are a “valuable solution for health care consumers,” Jon Robb, vice president of research at Devenir, said.
The report also found that HSA contributions continue to rise. Total contributions to HSA accounts from December 2012 to December 2013 were estimated at $16.4 billion, with accountholders retaining about 24 percent of those contributions after distributions for medical
Devenir also found the number of providers offering HSAs, as well HSA investment dollars, are both on the rise.
In 2013 more than 2,200 banks and credit unions offered health savings accounts, and investment assets reached an estimated $2.3 billion in December, up 30 percent from the end of 2012.
Researchers said 2014 will continue strong for the popular health savings vehicle.
Devenir projects HSAs will approach $24 billion in assets, covering more than 13 million accounts, by year-end.
Survey data was collected between January and February and primarily consisted of top 50 HSA providers in the HSA market.
Originally published on BenefitsPro.com